Tariff threats vexing investors, but don’t worry just yet: Mohamed El-Erian

The U.S. might be engaged in a tit-for-tat trade war with the European Union, China and Mexico, but global stock investors appear to be less worried about an economic fallout as a result.

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On Thursday, the Nasdaq Composite closed at a record high, and the Dow Jones Industrial Average is marching back toward 25,000 – sitting about 75 points shy of the key psychological level.

“I think the market is right in assuming this is part of a process, and that ultimately, because all parties have so much to lose from this, is going to focus minds and you will get a better outcome,” said Allianz SE Chief Economic Adviser Mohamed El-Erian during an interview with FOX Business’ Liz Claman on Thursday.

The U.S. is pursuing another round of tariffs on China that would target $200 billion in goods, according to senior administration officials. Already, President Trump has imposed a 25% tariff on Chinese products worth $34 billion. China responded in kind, levying tariffs on $34 billion worth of U.S. products, including pork and whiskey.

The U.S. is pursuing another round of tariffs on China that would target $200 billion in goods, according to senior administration officials. Already, President Trump has imposed a 25% tariff on Chinese products worth $34 billion. China responded in kind, levying tariffs on $34 billion worth of U.S. products, including pork and whiskey.

Trump — and his advisers — have repeatedly said the goal of tariffs is to establish a fair-trade system, but won’t go as far to say that they’re a negotiating tactic to gain leverage for free, global trade. Even with this messaging, El-Erian does not see a trade war on the horizon just yet.

“Is the current stage of trade tension a means to

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